As you will see here, Vern believes the US Federal Reserve Bank will be powerless to stop the market correcting the excesses of recent times. And, because of that, the ensuing losses will be like nothing you’ve seen before. Given that the last two crashes wiped close to 50% from the local stock market, that’s some claim.

How ‘mean’ will the reversion to the mean be? According to Vern, based on previous market conditions when we’ve witnessed peak optimism, this one could be the meanest since 1929.

OK, Marine Le Pen winning the French presidential election was an outside shot. Admittedly, I got it wrong!

Emmanuel Macron won 65% of the vote and became the French president-elect. We thought Le Pen would have pulled off a major upset. Which would have seen our ‘sell stocks and buy gold’ short-term trade recommendation return some handy gains.

But it wasn’t meant to be…

If you read the mainstream media, it was an ‘extraordinary victory’ for Macron. ABC reported yesterday:

‘Emmanuel Macron has pulled off an extraordinary victory. A year ago his political movement En Marche! didn’t even exist. Now it has helped propel him to the presidency.

‘The 39-year-old former merchant banker was always going to be the favourite once he made it to the final round against Marine Le Pen.

‘The National Front is still toxic in the eyes of many French voters on the left and the right.’

The media’s bias towards Le Pen’s party speaks for itself. Nevertheless, their combined influence isn’t as good as they think. Macron didn’t win the hearts of many voters. Abstention hit 26% — the highest rate since 1969 — in Sunday’s election.

The low turnout reflects the lack of enthusiasm among voters. The silent majority is frustrated with those in power and believe their vote means nothing. Perhaps, thinking there was no point in showing up, Le Pen’s supporters weren’t inspired by her first-round win.

My view: This is the beginning of the end for France. What does that mean for financial markets?

I’ll explain…

The end of the French economy?

The political establishment got what it wanted.

Emmanuel Macron was supported by political figureheads around the world. Angela Merkel, the German Chancellor, said Macron would be a ‘strong president’ before the vote. ‘I haven’t the slightest doubt that Macron, should he win, which is what I hope for, would be a strong president,’ Merkel told RND on 23 April.

Former US President Barack Obama also endorsed Macron. The Nation reported over the weekend:

‘“I have admired the campaign that Emmanuel Macron has run,” Obama said. “He has stood up for liberal values, he put forward a vision for the important role that France plays in Europe and around the world. And he is committed to a better future for the French people. He appeals to people’s hopes and not their fears.”’

Like Obama knows what’s good for any country… Obama doubled the US national debt in 8 years, started a war in Syria (over a pipeline), didn’t withdraw any troops from Afghanistan, and failed to close down Guantanamo Bay, to name a few.

With this impressive list of…um…accomplishments, I’m surprised that people even listen to him anymore.

Obama endorsing Macron means that you should know what to expect — more of the same. That’s because politicians don’t like change. They are addicted to spending money, raising taxes and making outlandish promises that get them re-elected.

Until now, socialists have run France every year since the Second World War. That’s why, as we discussed last week, France boasts one of the highest tax rates in Europe. It’s also one of the slowest growing countries in the EU.

It’s come at a massive cost…

The French unemployment rate stands at 10%, and one in four people under 25 are unemployed.

Remember, the former Rothschild investment banker served as the economic minister under former President François Hollande. Hollande boasted the lowest approval rating in French history.

The French should expect higher taxes and more outrageous unfunded promises in the future. That’s not great news for the euro in the medium to long term. As the country’s depression worsens, France will eventually default on its national debts. That’s likely to send the euro to fresh lows against the US dollar.

Yet the faceless leaders of Europe appear clueless…

‘Your victory is a victory for a strong united Europe and for German-French friendship,’ Angela Merkel’s spokesman Steffen Seibert tweeted to Macron.

Donald Tusk, Chairman of the European Union, tweeted: ‘Congratulations to French people for choosing Liberty, Equality and Fraternity over tyranny of fake news.’

What a load of garbage…

Tusk should write a how-to guide on Marxism. He’s the body and soul of the political elite that’s brought a major crisis upon Europe. Tusk only cares about the federation of Europe, which will see each member resign its sovereignty. Tusk wants absolute power for the EU, something Marine Le Pen opposed.

Macron is now in charge of Europe’s second largest economy. So, what’s the future look like?

It doesn’t look great.

In my view, this victory marks the beginning of the end for Europe’s establishment. Socialism is out of control and set to worsen. That’s likely to trigger a massive sovereign debt crisis beyond anything we’ve seen before.

Indeed, this looks like the beginning of the end for France.

My colleague, Vern Gowdie, has set his sights closer to home with his recently updated book, The End of Australia.

With Europe a basket case, and the rest of the developed world drowning in debt, Vern believes that it will trigger a 70–80% stock market crash. He makes a convincing case. And he offers some of the best advice I’ve ever come across on how to protect your wealth in a world where every asset class — gold, stocks, property…you name it — is plunging in value around you. You can find out exactly what those are here.

“…this victory marks the beginning of the end for France’s establishment. Socialism is out of control and set to worse.” I beg your pardon. Macron is the epitome of the reactionary anti-Socialist establishment and flag bearer for the Vichy Fascist collaborators with the Nazis. If France has a sovereign debt collapse it will not be because of “socialism” but parasitic looting by the Establishment.

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6 months 29 days ago

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